US stocks plunge after Trump continues to attack Fed Chairman

Traders work on the floor of the New York Stock Exchange (NYSE).
(Source CNBC/AFP)

In a post on Truth Social on Monday, President Trump continued to criticize the Fed Chairman on Monday, saying that the US economy is heading for a recession “unless Mr. Too Late (Trump's nickname for Mr. Powell - PV), a big loser, cuts interest rates NOW.” This statement has raised concerns about the independence of the Fed.

“Countries with independent central banks grow faster, have lower inflation; they have better economic outcomes for their citizens,” said Jed Ellerbroek, portfolio manager at Argent Capital Management in St. Louis, adding: “The idea of ​​politicians trying to influence the Fed is a really bad idea, and that’s very scary for the markets.”

Meanwhile, the outcome of tariff negotiations remains unclear and the continued escalation of US-China trade tensions has also kept investors on edge. “Companies... are uncertain about how to react, waiting for a final answer from the US on tariffs,” Ellerbroek said.

As a result, all three major US stock indexes fell more than 2%, with the sharp decline of the “Magnificent Seven” group (a group of 7 technology stocks with large capitalization growth) putting the heaviest pressure on the Nasdaq.

Specifically, the S&P 500 lost 124.50 points, equivalent to a decrease of 2.36%, closing at 5,158.20 points, 16% lower than the record closing high on February 19. If the index signals a close 20% lower than that all-time high, that would confirm that the index has entered a bear market.

Similarly, the Dow Jones fell 971.82 points (equivalent to a decrease of 2.48%) to 38,170.41 points; the Nasdaq Composite lost 415.55 points, or 2.55%, to 15,870.90 points.

All 11 major sectors in the S&P 500 ended in negative territory, with consumer discretionary and technology posting the biggest percentage declines. The “Magnificent Seven” tech giants were particularly hard hit, with Tesla and Nvidia down 5.8% and more than 4%, respectively. Amazon fell 3%, as did Meta Platforms. Equipment maker Caterpillar fell 2.8%.

Volume on U.S. exchanges was 13.89 billion shares, compared with the 18.87 billion average for the full session over the last 20 trading days.

The first-quarter earnings season is in full swing this week, with dozens of closely watched companies set to report. Of the 59 companies that have reported earnings so far, 68% have beaten Wall Street expectations, according to LSEG data.

But as of Thursday, analysts expected S&P 500 earnings growth in the first quarter to be 8.1% year-over-year, down from the 12.2% growth forecast at the start of the quarter, according to LSEG.

Notable earnings reports on the agenda this week include Magnificent Seven members Tesla and Alphabet, along with a host of high-profile industrial companies including Boeing Northrop Grumman, Lockheed Martin and 3M.

Source: https://thoibaonganhang.vn/chung-khoan-my-lao-doc-sau-khi-ong-trump-tiep-tuc-cong-kich-chu-tich-fed-163139.html